Mr. Jeremy Martin reports

NEW HIGH GRADE DRILL RESULTS AND OPERATIONS UPDATE FROM THE ARAGUAIA NICKEL PROJECT, BRAZIL

Horizonte Minerals PLC has released new high-grade drill intersections from recent bulk sampling drilling and has provided an update on the work related to the feasibility study at its 100-per-cent-owned Araguaia nickel project in Para state, north-central Brazil.

Highlights:

• High-grade nickel assay intersections received to date for the first 15 holes from the bulk sample drilling include:
  • 12.47 metres grading 2.17 per cent nickel;
  • 12.45 metres grading 2.13 per cent nickel;
  • 13.35 metres grading 2.07 per cent nickel;
  • 13.95 metres grading 1.99 per cent nickel;
• Drill program on schedule with 113 diamond holes drilled (2,188 metres) completed;
• Further infill drilling results due from the Pequizeiro deposit where drilling is currently under way;
• Significant progress made on the environmental and social work for Araguaia -- public hearing process for the preliminary environmental licence is imminent;
• On track to commence bulk sampling collection early February, 2015, with a 200-tonne bulk sample to be used to feed a continuous large-scale pilot plant in the second quarter of 2015 with initial dryer/agglomerator commissioning and trials commencing by the end of January, 2015.

Horizonte chief executive officer Jeremy Martin said: "We are making good progress on the feasibility work at Araguaia with the drilling and collection of the 200-tonne bulk sample running to schedule. The drill results received from the bulk sample sites confirm the high nickel grades that are scheduled for the early part of Araguaia's mine life. The next major step will be the running of the pilot program with the aim of confirming the detailed design parameters around the rotary kiln electric arc furnace process and the production of nickel.

"Despite the current challenging market conditions, the company is on track to deliver the planned milestones during 2015; we have a solid funding position; and the ongoing results from Araguaia continue to deliver. The fundamentals behind the nickel markets over the next 24 to 36 months from consensus forecasts are positive. This combined with the use of a proven processing route (RKEF) to produce ferronickel and Araguaia's favourable mining jurisdiction make a strong investment case for our flagship development project. I look forward to providing further updates throughout the year as we move Araguaia through the feasibility process."

Further details

Drilling

The drilling program which will support and form part of the feasibility study on Araguaia started in November, 2014, and is progressing well. Seven drill rigs are currently employed on this program and 113 HQ3 diamond holes comprising 2,188 metres have been completed to date. The program consists of three parts:

1. Testing of selected bulk sample sites: Drilling is complete for a total of 64 holes and 944 metres, and partial results have been received and are presented in the table. Drilling was completed on four-metre grids over four selected sites.
2. Infill mineral resource drilling: Infill drilling on 50-metre-by-50-metre grids is planned on selected parts of the Pequizeiro, Baiao, Jacutinga and Vila Oito deposits. To date 49 holes totalling 1,244 metres have been completed on the Pequizeiro deposit the results of which are awaited.
3. Additional geotechnical and hydrogeological drilling: This drilling work will be undertaken in March, 2015.

         BULK SAMPLE SITE TEST DRILLING 
  FOUR-METRE-BY-FOUR-METRE DRILLING INTERCEPTS 
   GREATER THAN OR EQUAL TO 1-PER-CENT-NICKEL 
                      CUT-OFF              

Hole        From (m)   To (m)  Width (m)    Ni %
                                       
PCA-DD-1421B   1.65    15         13.35     2.07
PCA-DD-1422B    NSI                        
PCA-DD-1423B   1.2     13.65      12.45     2.13
PCA-DD-1424B   8.38    15          6.62     1.25
PCA-DD-1425B   1.04     9.32       8.28     1.39
PCA-DD-1426B   3.3     15         11.7      1.31
PCA-DD-1427B   1.06    15.01      13.95     1.45
PCA-DD-1428B   0.86    15.02      14.16     1.5 
PCA-DD-1429B   2.44    16.09      13.65     1.15
PCA-DD-1430B    NSI                        
PCA-DD-1431B   1.2     15.15      13.95     1.99
PCA-DD-1432B   3.45     8.43       4.98     1.09
PCA-DD-1433B   1.34    13.66      12.32     1.49
PCA-DD-1434B  11.25    13.77       2.52     1.03
PCA-DD-1435B   2.53    15         12.47     2.17

NSI: No significant intersection.

The compositing of the nickel grades in the individual holes was completed across geological boundaries using a nickel cut-off of 1 per cent with a minimum intercept length of two metres and a maximum length of internal waste of two metres. All holes were vertical and, as these nickel laterite deposits are essentially flat-lying, all widths given are true widths. Core recoveries in the mineralized sections met the appropriate standards for this style of mineralization and were generally greater than 90 per cent.

Sample preparation and analyses

Samples from drill core were crushed and pulverized at the ALS laboratory in Goiania and the resultant pulps analyzed at the ALS laboratory in Lima, Peru, using tetraborate fusion and X-ray fluorescence. Full quality assurance/quality control procedures were followed, including the insertion of standards, duplicates and blanks. Check samples representing approximately 5 per cent of all the samples will be sent to another international laboratory for analysis by XRF.

Bulk sampling

Preparations are at an advanced stage for the collection of a 200-tonne bulk sample to provide feed for RKEF pilot plant metallurgical testwork planned for the second quarter of 2015. The results of the presample collection drilling described above will be used for the precise siting of the wide-diameter auger holes to be used for the sample collection. The wide-diameter auger drilling is scheduled to commence in February, 2015.

Pilot plant RKEF metallurgical testwork

In preparation for the pilot plant testwork scheduled for the second quarter of 2015 at the IGEO testwork facility at Morro Azul, Minas Gerais state, initial dryer/agglomerator commissioning and trials are scheduled to commence by the end of January, 2015. A 20-tonne sample for this commissioning has been selected from a previously collected (September, 2011) bulk sample and despatched to the testwork site.

Environmental and social permitting

The environmental and social impact assessment was finalized and the report was submitted to Brazilian state licensing authority (SEMA) in the third quarter of 2014 for Araguaia's preliminary licence evaluation. The next stage is the public hearing which is scheduled to take place in the first quarter of 2015.

As part of the permitting process, the company has consulted with a large portion of the local community and other stakeholders in the last three months to ensure the Araguaia project will have a net positive impact on the local communities delivering sustainable value over the long term. Engagement and consultation were undertaken with local community leaders, elected local government ministers and elected state government ministers among other stakeholders to develop positive relationships with Horizonte as the project progresses to the feasibility study stage.

The company continues to value the environment, through rehabilitation programs of drill sites, ad hoc environmental education with community neighbours, responsible use of water and its recycling program.

Horizonte Minerals prepared this news release and David Hall, BSc, MSc, fellow SEG, PGeo, a director of the company and qualified person under National Instrument 43-101, reviewed and approved the drill hole technical information.

We seek Safe Harbor.